NFT Research and Development
We've spent the last several weeks hashing out the best ways to bring NFTs to HIVE. As many already know I've built a decentralized smart contract platform for HIVE that's been running the DLUX sidechain/layer 2 for nearly 3 years. Several of the innovations that are availible on Hive via DLUX can lend themselves very well to solving some of the problems with NFTs on other chains.
Following are some of the features that we find necessary to implement, I hope this post starts a conversation and all HBD proceeds and HBD donations to 
Needed Features
- Scaling - NFTs must not hinder the environment they are on
- External Assembly - Minimize the data and processing in consensus
- Cross Chain - The ability to move NFTs not just between chains, but between layer 2s
- Transferability - Ability to Transfer and Escrow Transfer NFTs
- Auction - Get the best price for your NFT
- Trust - Decentralized with no back doors
Definition Based NFTs
NFTs are expensive. By their very nature they need to be individually tracked between accounts. Having a decentralized system keep track of these NFTs presents a scaling headache to any who seek to tackle this challenge. Care should be taken in generating the contracts and the non-fungible aspects of the token. By having definition based NFTs you can have the definition in several places and move NFTs between accounts and chains.
- Move NFT from one layer 2 on Hive to another layer 2
- Move NFT from one chain to another
This fulfills many of the base requirements for Vitaliks proposal on ETH below.
Scaling Issues
Having one Layer2 to run all future NFTs is kind of a fools errand, part of the initial package here is to be able to transfer NFTs between chains. By utilizing the definition based protocol and the off chain reconstruction techniques a simple layer 2 to layer 2 handshake is all that's needed to take an NFT from any number of interoperable layer 2's thus making scaling a non issue right out of the gate.
Part of the definition will include an IPFS hash to code that will assemble a finished NFT from the data on chain. Be this a fill in the blank real estate contract, pixel art, or layer based pictures. This way computing can be minimized on chain and by node processors but censorship resistance remains strong.
Transferability
Sending an NFT via an off chain sale is of course possible, but having standard contracts like: Only transfer the NFT after x HIVE is sent with this memo to this account protects both buyers and sellers(whom ever goes first in a swap).
Auctions
A built in way to track and keep bids on chain ensures price discovery and fair open markets. The UI for the aucion can easily be a portable dApp such as available on DLUX.
DHF Payback
Having developed the longest running decentralized layer 2 on Hive has some advantages in it's abilities. In addition to supporting dApps, layer 2 tokens, DEXes, trustless NFT transfers, Proof of Brain, auctions, and smart contracts in general; one of them of course will be to track funds received and autonomously payback the DHF with a portion of funds received to buy layer 2 tokens from fresh distribution. Normally these funds are used to buy orders off of the DEX and increase the value of the coin to be shared buy all owners of the coin. However, while the ecosystem has an outstanding balances with the DHF it will pay back the DHF with a portion of new funds received.
Discussion
All discussion is welcome below. I am hoping to make the best possible product with any and all help. Please share your ideas and criticisms below.